Technically a reverse H&S pattern being formed. If breaks out 592 levels, can move higher.
Disc: Invested
Technically a reverse H&S pattern being formed. If breaks out 592 levels, can move higher.
Disc: Invested
I have sold 50% of endurance tech during the recent run up . Stock is good compounder and giving around 20% including dividend in last 5 year . Reason for trimming is around 1/4 of revenue from Europe and the energy crisis may impact the margins and topline . Also recent run up makes the valuations high.
Sold off gravita (entry 250), PEL (entry 1680) .
Increased allocation to
Gati : Last quarter company was able to improve margins and shows sign of turnaround . 7 new sorting centers in next 1-2 years will improve the overall margin & topline . Merger with ACCI & buying out stake of KWE by allcargo is the next triggers
Gateway distriparks : Management increased the capex to 250 cr in next 2 years . commissioning of Dedicated freight corridor in next 1-2 year will significantly improve the performance
Ujjivan financial services : Good improvement in last quarter and recent run up in share price made me to average it (entry price 130) . In next few quarters they have to do QIP and in another 1 year reverse merger will complete .
Sandhar technologies : very similar business to endurance tech but undemanding valuation made me to enter this. After completion of capex and Full utilization topline will be around 5000 cr and current market cap is 1400 cr
Top holdings
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Watchlist: Punjab chemicals, La opala, Tiger logistics, Specialty restaurant, Newgen
Preet Shah’s analysis of Rolex Rings-
I believe Rolex Rings is available at a decent rate and may give multifold returns in coming years.
Overall Industry analysis and company’s position-
Scalability of Business-
I foresee a great room to improve margins further as from next quarter inventory will be streamlined, commodity prices have reduced and efficiency of operation may improve utilisation of capacity. Previous quarter, company had lot of inventory on account of higher commodity prices of raw material. Company was hedging this risk by increasing the inventory. In addition, the raw material price hike is being passed on to the customers so the commodity raw material risk is manageable
Management Overview-
Management seems to be quite aggressive on the business expansion. This can be seen from past experience- In 2016/17 management took lot of risk to expand manufacturing capacity and the way they managed to get back on track on debt is phenomenal. In addition, Company’s management is always considering existing debt reduction as a top most priority. They have already reduced a lot and bring debt to equity ratio 0.25. Soon company will be debt free
Other Information-
In view of all these, I see this company as a next goldmine. It is just a view based on my research. Treat this message for healthy discussions only, it’s not a recommendation to invest on this counter. Any contrary views or what not working out for the company or any other additional considerations shall highly be appreciated.
Thanks.
Have written a twitter thread on Harsha Engineers. You can check it out if that’s helpful. Thank you
https://twitter.com/MarketLearner_/status/1569031746951475200
Preet Shah’s analysis of Rolex Rings-
I believe Rolex Rings is available at a decent rate and may give multifold returns in coming years.
Overall Industry analysis and company’s position-
Scalability of Business-
Size of global bearing industry is USD 50Bn. Split by segment is 38% -Automotive & rest 62%- Industrial OEM
Looking at the Indian bearing market, overall industry is expected to grow at 10-11% CAGR. Make in India initiative, China plus 1 and in near future Euro plus 1 theme may add fuel to overall Indian bearing industry. Schaeffler and other leading players are expanding manufacturing capacity in India. Coming years, India may be seen as main hub of bearings exporters. In addition to this, EV market is a huge potential and I believe Rolex Rings will be benefited a lot as being a close proxy to emerging opportunity.
Rolex Rings is having wide variety of product range varying 0.01 kg to 163 kg and 23mm to 900mm diameter. MOAT of a business is really good.
Overall revenue of the company consists of 52 percentage of bearing ring and auto components 48%. Company is also expecting 20 to 25% CAGR growth in coming years
EBITDA margin of company is also quite decent as compare to other competitors.
I foresee a great room to improve margins further as from next quarter inventory will be streamlined, commodity prices have reduced and efficiency of operation may improve utilisation of capacity. Previous quarter, company had lot of inventory on account of higher commodity prices of raw material. Company was hedging this risk by increasing the inventory. In addition, the raw material price hike is being passed on to the customers so the commodity raw material risk is manageable
Management Overview-
Management seems to be quite aggressive on the business expansion. This can be seen from past experience- In 2016/17 management took lot of risk to expand manufacturing capacity and the way they managed to get back on track on debt is phenomenal. In addition, Company’s management is always considering existing debt reduction as a top most priority. They have already reduced a lot and bring debt to equity ratio 0.25. Soon company will be debt free
Management is also keen to expand business down the line 2 years by reinvesting profits. As of date there are no immediate CAPEX plans. First priority with profits are reducing debt and rewarding stakeholders. For me, this is very important consideration.
In view of all this, I would say its a family run professional business.
Other Information-
In view of all these, I see this company as a next goldmine. It is just a view based on my research. Treat this message for healthy discussions only, it’s not a recommendation to invest on this counter. Any contrary views or what not working out for the company or any other additional considerations shall highly be appreciated.
Thanks.
Sharing a deep dive of the pure play Gold Loans financing companies - Muthoot & Manappuram for the benefit of VP community.
What’s next for MDL?
Source:
Slide #9:https://mazagondock.in/images/pdf/corporate_investor_presentation_q1fy2022-23.pdf , MDL Press releases
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